AKC News // New property tax legislation published

Owners of investment properties and holiday homes could be hit by a €200 tax in a matter of weeks after the Government published new legislation on the matter this lunchtime.

Environment Minister John Gormley said he hopes the charge will raise €40m annually for city and county councils.

In last October's Budget, the Government announced it was to introduce what it termed a €200 charge on 'non-principal private dwellings', in order to support local government finances.

The legislation was published this lunchtime. The Government wants to have it passed by both Houses of the Oireachtas before the summer recess.

It will mean that people who own residential rental property, holiday homes and vacant residential property - unless newly constructed and unsold - will be liable to pay the charge to the relevant local authority.

Minister Gormley said the move is significant as local authorities should not be unduly dependent on Central Government funding and this new form of revenue stream will be derived and spent locally.

Yet for people with second homes, this tax will be yet another bill at a time of shrinking income.